Foreign portfolio investors (FPIs) have registered a strong comeback in the Indian stock market in the beginning of February. In the first fifteen days of the month itself he invested Rs 19,675 crore. After heavy selling for three consecutive months, their interest in the domestic market seems to be increasing again. Experts are considering the expectations of US-India trade agreement and softening of global economic conditions as the main reasons behind this.
new data
- According to depository data, FPIs had sold large amounts from the Indian market in the past months.
- They had withdrawn Rs 35,962 crore in January, Rs 22,611 crore in December and Rs 3,765 crore in November.
- Continuous withdrawals kept the domestic stock market under pressure and this also reflected the cautious thinking of global investors.
- So far in the year 2025, FPIs have withdrawn a total of Rs 1.66 lakh crore (about $ 18.9 billion) from the Indian stock market.
Situation changed in February
These figures are considered to be one of the weakest periods for foreign investment in recent years. Major reasons for the selling included rupee fluctuations, global trade tensions, concerns over possible US tariff policies and high share prices in the Indian market. However, there have been signs of improvement in February. Of the 11 trading sessions till February 13, FPIs bought on 7 days, while they sold on 4 days. Despite buying on most days, data so far this month shows that FPIs have sold shares worth a net Rs 1,374 crore.
Market experts believe that the confidence of foreign investors seems to be improving due to recent investments, but to maintain this momentum, stability in global markets and clarity on trade and monetary policies will be necessary.
Meanwhile, on Friday (February 13), the Indian stock markets closed with a huge fall. The market was impacted by weak global cues and growing concerns over the potential impact of Artificial Intelligence on the global economy. During this period, the key BSE index fell 1,048 points or 1.25 percent and closed at 82,626.76. At the same time, NSE Nifty fell by 336.10 points or 1.30 percent and closed at 25,471.10.
(Input: IANS)
